Thai power producer B Grimm Power PCL and Digital Edge DC will jointly invest about $1 billion in a Thailand data center as demand rises for artificial intelligence (AI), cloud computing and other digital services across Southeast Asia, Bloomberg reported on Monday.

The data center, which will have a capacity of 100 megawatts (MW), is expected to begin commercial operations in the fourth quarter of 2026, B Grimm Power CEO Harald Link and Digital Edge CEO John Freeman said during a press briefing on Monday.

It will be located in eastern Chon Buri province, about 100km (62 miles) from Bangkok, according to the report.

B Grimm Power is also studying a plan to invest at least $1.6 billion more in additional data center projects with a total capacity of about 200MW, said Usa Nuetap, the company’s head for data centre development.

According to Bloomberg, Thailand has secured billions of dollars in investment commitments from global tech giants such as Amazon.com Inc, Alphabet Inc, ByteDance Ltd and Alibaba Group Holding Ltd to build data centers and cloud services.

Prime Minister Paetongtarn Shinawatra’s government is also offering tax and other incentives to lure investments in data centers as it seeks to establish the country as a hub for artificial intelligence infrastructure.

“Thailand stands out as one of Asia’s most compelling markets for digital growth with surging demand for AI and machine learning,” Freeman said. Thailand’s promotion of renewable energy also makes it appealing for the data center investment, he said.

Backed by private equity fund Stonepeak Partners, Digital Edge operates 24 data centers across India, Indonesia, Japan, Malaysia, the Philippines and South Korea.

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